A UK regulator has filed its first lawsuit against the HTX crypto exchange, linked to Justin Sun.
Date: 2025-10-24 Author: Oliver Abernathy Categories: BUSINESS
The UK's Financial Conduct Authority (FCA) has initiated civil proceedings in the High Court against the HTX crypto exchange (formerly Huobi), which is advised by entrepreneur Justin Sun. According to Bloomberg, the authority accused the platform of violating financial promotion rules by distributing crypto services to UK users without official registration.
The FCA's statement emphasized that such actions undermine trust in the UK's financial system. The regulator emphasized its goal to protect consumers and maintain transparency in the digital asset market. "We are prepared to act decisively where we see unlawful practices," the agency stated.
This lawsuit marks the first prosecution of a crypto company in the UK. Previously, most market players sought to adapt to the FCA's new requirements, but HTX, according to the regulator, ignored the need to obtain a license.
HTX has long been on the FCA's warning list, along with other companies that the watchdog believes are illegally offering their services to UK residents. Back in the fall of 2023, the regulator officially warned users about HTX and KuCoin's lack of authorization to operate in the country, urging investors to avoid dealing with these platforms.
According to UK law, any crypto firm is required to register with the FCA, demonstrating compliance with anti-money laundering (AML) standards and financial crime prevention measures. Currently, approximately 50 companies have received such registration, but HTX is not among them.
Despite its conflicts with regulators, the exchange remains one of the largest in the world. In May 2024, HTX surpassed Coinbase in daily spot trading volume for the first time, reaching $2.15 billion, behind only Binance, Bybit, and OKX.
The FCA is not yet disclosing details of the trial, but emphasizes that this case should serve as a warning to other market participants. The agency intends to demonstrate that any activity related to crypto assets requires transparency and compliance with regulations.
In February 2024, Justin Sun announced that he held over 28,600 BTC (over $1.6 billion) on HTX, demonstrating personal trust in the platform despite legal challenges. This fact further increases attention to the case, which could set a precedent for the UK crypto market.
